Running out of options

New York governor has just suggested a budget full of fees and cuts which can be harbinger of things to come. Unless the economy moves ahead and New York is less reliant on Wall Street bonus, I don’t know how they will be able to raise revenues.

They can only charge so much on the so called sin taxes and maybe bring gambling to the state, but will it be enough to plug their deficit hole. There has to a drastic cut in spending whether some constituents like it or not. They cannot print their own money to get them out of this deficit, and further they have to balance their budget.

Blind raises given to government workers in good times and continued pensions and other facilities without the foresight to see for the future is not going to work anymore.

Increasing taxes and fees in a state, already one of the most expensive in the country will make business flee the state in droves.

If raising taxes coupled with spending cuts are instituted then people may be more acceptable of it and more hopeful about the future, otherwise in this day and age, where mobility has become a fashion in terms of job search, it would not be long when business and people will flee to states with lower taxes no matter what the attractive of the NY state is.